1971 (1) TMI 15

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....dent fund scheme for its employees. But that provident fund was not a recognised one. The assessee retired during the previous year relevant to assessment year 1963-64 and received out of this provident fund an amount of Rs. 27,948 which represented the interest on the amount of his own contribution to the fund. The Income-tax Officer assessed this amount as the assessee's income from other sources. That order was confirmed in appeal by the Appellate Assistant Commissioner. But, on further appeal to the Tribunal by the assessee, the Tribunal came to the conclusion that the receipt in question being profits " in lieu of salary ", the same was his salary as defined in section 17 of the Income-tax Act, 1961 (to be hereinafter referred to as " ....

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....) Income from other sources. The salaries are brought to tax under section 15 and "the income from other sources" is brought to tax under section 56. In this appeal we are not concerned with the other heads of income. " Salary " is defined in section 17 as including any "profits in lieu of or in addition to any salary or wages" (section 17(l)(iv). Sub-section (3) of section 17 says: Profits in lieu of salary includes-- ... any payment ... due to or received by an assessee from an employer or a form employer or f rem a provident or other fund (not being an approved supernnuation fund), to the extent to which it does Mt consist of contributions by the assesses or interest on such contributions. (emphasis supplied) The contributions to rec....